FINAL VERSION FIVE-A-SIDE FOOTBALL MARKET STUDY
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Transcript of FINAL VERSION FIVE-A-SIDE FOOTBALL MARKET STUDY
2014/12/4
1
COURET Matthieu, GRAZZINI Martin, CAO Mengxing,
ZHANG Bingce, SUBRAMANYAM Kumar
Umbro is one of main actors on the five-a-side soccer market
in France
This industry is facing for 3 or 4 years a concentration
phenomenon
Umbro lost its parnership with Soccer 5 since this company
merged with Urban Football to become Urban Soccer
Aim of the study
which strategy should Umbro adopt on this market ?
Market study
Consumer profile analysis
Questionnaire methodology and results
Strategic benchmark
Recommendations
2014/12/4
2
FFF members is stagnating, five-a-side soccer attraction
is skyrocketing
1 million of French people regularly play five-a-side
soccer
It represents an opportunity for (new) stakeholders to
invest
Soccer centers:
Dominated by independents (30% of global turnover)
Several mergers (Temple du Foot/Le Five and Urban
Football/Soccer 5)
Le Five: 24 centers / Urban Soccer : 22 centers
2014/12/4
3
Equipment manufacturers:
Nike, Umbro, Adidas and Asics
Beverages:
Coca-Cola, Vittel, Powerade
Medias:
RMC, L’EQUIPE, France Info and Libération
75%
25%
The average time spent in the
center
Time spent on the
field
Time spent outside
the field (bar,
restaurant, shop…)
2H30
A regular football player pays his membership card 100€
A five-a-side player spends in average 250€
2014/12/4
4
10%
35% 45%
10%
Customer profile by age
Less than 17
17 to 25
25 to 35
More than 35
25%
45%
15%
15%
Customer profile by SCP
Employees
Executives
Students
Others
2014/12/4
5
We conducted 16 qualitative interviews
They allowed us to understand :
the reasons and the values driven by five-a-side football
the consumer’s consumption habits and the
important factors related to his experience
the role of an equipment manufacturer
10%
50%
30%
10%
Age of the interviewees
Less than 17
years old
17-25 years old
25-35 years old
More than 35
years old
62,5% 18,75%
12,5%
6,25%
Socio-Professional
Categories
Students
Employees
Executives
Others
• Only men have been
interviewed
• Play on average 4 times
per month, so 1 time per
week
• They are regular players
An entertaining, sporting and relaxing moment with friends in a
qualitative structure
Verbatim: “A modern football development, a new alternative to
regular football”
Passion, teamwork and friendship
Emphasis more on technique, the game is faster
and requires more communication
Values
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6
60% 20%
10%
10%
Where are the interviewees
used to play five-a-side
soccer? Rennes (Cap Malo)
Paris
(Aubervilliers)
Lyon (Sport dans
la ville)
Poitiers (Arena
Sport)
Reasons to choose a
soccer center:
• Cheap and easy to
access
• More convenient,
easier to organize
Customers’ expectations:
• 82% of the interviewees put balls and bar/restaurant in their top 3 and
60% would like a sauna/jacuzzi
• Coaching and discovering activities are expected
Customers and sponsors’ relationship:
• 75% are sensible to a sponsor if it provides the brand top quality
equipment and price reduction
• Only 40% have already bought products.
Verbatim: “I have actually bought shoes, because I know they are
specialized products made for artificial field”
93%
60% 50%
30% 10%
0
20
40
60
80
100
Nike Umbro Adidas Puma Reebok
Proportion of top-minded equipment manufacturers
sponsoring soccer centers
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BENCHMARKING
Performance benchmarking
-Compare products and services
Process benchmarking
-Derive from performance benchmarking
-First identify the weak competing points of their products or
services and then focus on the key processes to eliminate those
weaknesses
Strategic benchmarking
-Identify the winning strategies of successful companies
-Compare the strategic goals in order to spot new strategic
choices
STRATEGIC BENCHMARKING
Search for industry best practices that lead to superior
performance (NIKE)
Evaluate the competition performance in terms of sponsoring
soccer centers
Website analysis of different soccer centers all over France
(109/232)
http://www.mag5.fr/ANNUAIRE-des-centres-Retrouvez-les-232-complexes-de-France_a563.html
2014/12/4
8
Soccer Center Video
Game Food & Beverage
Sports
Manufacture Media Others
UrbanFootball
(Totally 16, 11 in Paris) PlayStation POWERADE NIKE L' OREAL
Soccer5
(Totally 16) PlayStation POWERADE NIKE L' OREAL
Le FIVE
(Totally 24, 7 in Paris) PlayStation GATORADE, Pepsi RMC
Futbol Futbol
(Totally 13) PlayStation
GATORADE, Pepsi,
TROPICANA,
ORANGINA,
SCHWEPPES
WSB
SoccerPark
(Totally 9) PlayStation GATORADE Adidas
Soccer United POWERADE Adidas
Teams5 PlayStation,
EA Sports Pepsi NIKE
Radio Africa 1,
Le 10 sport
Marmara, Mercedes-
Benz, Beur FM, Wati
B, Skyrock, Enyya
Communication
Evad'Sports
GATORADE, Pepsi,
ORANGINA,
SCHWEPPES,
HEINEKEN
Adidas
Offside Foot Indoor PUMA TRG/EPS CONCEPT
DreamFoot POWERADE Umbro 2Hevent
SPORT N DOOR N/A
Chart of sponsors in Soccer Center. (Resource: Mag5, 22/08/2014)
27%
17%
32%
10%
14%
Sample of Big Soccer
Centers in France (41)
UrbanFootball Soccer5 Le FIVE FUTBOL FUTBOL Soccer Park
38%
62%
Sample of Soccer
Centers
in France (109)
Big Centers Others
2014/12/4
9
Big Soccer Center Independent Soccer
Center
Average Number of
Sponsor 4.575 3.29
Max
Futbol Futbol Bordeaux-
Cestas (15)
Futbol Futbol Bordeaux (14)
H Park Clermont (18)
World Soccer Indoor Lons (15)
Team5 Roissy-en-France (15)
Min 3 (relatively small standard
deviation) 30/64 without sponsors
Rate of Sponsorship by
Sports Manufactures 67.5% 28.125%
50%
34%
4% 5% 7%
Sports Equipment Sponsors Occupancy
NIKE
Adidas
Umbro
Puma
Others
Sponsors
Video Game Food &
Beverage Sports
Equipment Media
• Most of the centers have official partners specialized in video
game, food & beverage and sports equipment industry.
• As a lot of local centers emerge, there are still some of them
without sponsors (e.g. SPORT IN DOOR).
• Unlike partners of food & beverage industry, normally there is
only one sponsor that manufactures sports equipment.
Strengths Long history focus on football equipment (Founded in 1924)
The first and the leader of equipment brand of five-a-side football
market
High quality products
High customer loyalty
Weaknesses Less partnerships with soccer center
Less recognized brand image
Outdated and less updated equipment design
Opportunities 2014 new partnership with FC Nantes and RC Lens
Up going growth in five-a-side industry (2 million players)
Lots of emerging local soccer centers
Threats Fierce competition (e.g. NIKE took over Soccer 5’s sponsorship and
merged it to UrbanSoccer)
SWTO Analysis of Umbro
Strengths High occupancy of current market
World known reputation
Well designed and updated equipment
Weaknesses
Opportunities Sponsorship with France National Team
Up going growth in five-a-side industry
Lots of emerging local soccer centers
Threats Adidas dominance in European countries
Faked imitation from other local brands
SWTO Analysis of NIKE
-Brand image
-Financial support
-Current situation
-ILC (Industry Life Cycle)
-Hard to imitate
-New strategic choices
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10
Set up a national parntership with Le Five
Back-up strategy: convifoot or another group of
independents
Focus on Nantes and Lens, two partners in the football
industry
Cross-industry alliance (co-branding)
Set up a national parntership with le Five
24 soccer centers on the national territory (7 in Ile-de-
France)
Le Five hasn’t developped a national partnership with an
equipment manufacturer yet
Possibility to develop a flagship in Paris
Presence in Nantes and Lens areas
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11
Back-up strategy:
Convifoot or another group of independents
Reach an agreement with a group of independents
Name a unique representative which would be
responsible for the whole strategy with Umbro
Convifoot, 30 centers located all over the French
territory (1 of them in Lens area)
Increase Umbro’s exposure among its 1300000 players
per year and medias
Back-up strategy:
Convifoot or another group of independents
Difficulties to develop a global strategy with everyone
of the centers
More informations needed about their actual
partnership with Adidas
Focus on Nantes and Lens, two partners in the
football industry
Capitalize on Umbro’s brand awareness in those two
cities through the partnerships with those clubs
Develop a real strategy with two club on the five-a-side
football market that could benefit to both.
Co-branded soccer centers (e.g. Manchester United and
Power league’s partnership)
Five-a-side academies
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Cross-industry alliance (co-branding)
The basic idea of strategic alliance is the agreement
between two or more companies which share the same
categories of target customers or pursue the similar
objectives
Aim for synergy, enhance bargaining power
Each partner shares information of soccer centers or
the rivalries actions
Example: the Sports Kit by Nike and Apple (product
level)